When China can make wind turbines and ship them to the United States for less than the cost of manufacturing here we have a serious problem that remains unaddressed. It was reported on ABC News that there will be thousands of manufacturing jobs in China and hundreds of jobs in the United States confirming Rob Atkinson’s column in BusinessWeek. Unfortunately it’s not just wind turbines made in China. American manufacturers cannot compete with many foreign nations due to the high pay rates in this country.
I know many will say its America’s high taxes but that is not the primary issue. Labor rates in China, India, and other developing nations are 50% to 75% less than those in the United States. Reported on CNN last week was the T shirt factory that is now back in operation in Haiti, where the pay rate is $1.50 per hour. Those Haitians are happy to have that level of income. What do baby sitters earn in America? From babble.com “This useful post on babyslumber.com recommends paying between $15 and $20 an hour.” If I had small children there would be no baby sitters at my house.
Congress did not write the law requiring those manufacturing jobs must be here. The reason is that the administration fears such a regulation will start a trade war. Trade wars were part of the problem during the Great Depression (Smoot Hawley Tariffs).
Unless we negotiate understandings with other nations about our needs to retain manufacturing jobs in the United States, we are in for a long recessionary period in the U.S.A.
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